Dr. Steve Sjuggerud has an amusing but also slightly terrifying article over at Stansberry Research. It turns out our U.S. Government manages to lose money even when it’s making money.
I was just reading the Annual Report from the U.S. Mint. These are the guys who produce our coins.
In short, you take a piece of paper, worth one cent… You print the words “Twenty Dollars” on it (at a cost of a couple pennies per bill)… And you make a profit of… well… about $20 (give or take a couple pennies). Right?
Actually, in a few instances… our government manages to LOSE money from MAKING money.
Wow. Losing money from making money… That’s got to be hard to do, right?
In 2012, it cost the U.S. Mint two cents to create a penny. I am not rounding up. It cost two cents. That is actually down from 2011, when it cost 2.4 cents to make a penny.
It’s not just the penny… Last year, it cost the Mint over 10 cents to create each nickel in 2012.
When you add it up, our brilliant government lost nine figures last year alone (that’s a number in the hundreds of millions) simply on minting pennies and nickels last year.
And our government lost more than $100 million on MAKING MONEY – something that should be a guaranteed profit!
Think about it this way…
The federal government takes your money in taxes – one-third of your income. And then it uses that money to mint pennies and nickels – at a major loss… at a cost of twice the face value of the coins!
Your government has an incredible power – to mint money out of thin air. And it is so incompetent, it manages to lose twice the face value of those coins on every one that is made.